Our material themes

Telkom operates in a highly regulated environment affected by policy uncertainty and inconsistency and continuously evolving regulations and legislation. We are affected by international regulatory trends regardless of the different operating contexts and political environments. New or changing regulations affect resource availability. Policy uncertainty and inconsistency impact business and investor confidence.	Regulatory environment	MM1	We define our material themes as matters that materially affect our ability to execute our strategy and create value over the short, medium and long term, and have the potential to erode value for providers of financial capital and other stakeholders. Management's materiality determination process and the material themes were approved by the Group Exco, Audit Committee and Board. Refer to Materiality for our materiality determination process. Refer to external themes, our stakeholders and strategic risks.	MM2	Competitive landscape	Traditional and non-traditional competition remains intense, with changing customer needs, market disruptions and the convergence of various industries. This provides opportunities for collaboration with partners. It requires a focus on innovative products and services, customer satisfaction, capital allocation, cost optimisation and business growth.
Customers expect a seamless and reliable digital experience and value for money. They expect Telkom's products and services to meet their needs, always be available, and keep their information secure. The customer experience affects our reputation, as well as customer attraction and retention, all of which are critical in a competitive market. Meeting customer expectations requires appropriate investments in our networks, infrastructure and systems, products and services, and people.	Customer expectations and experiences	MM3		MM4	Cyberthreats	Cyberattacks and data breaches could impact Telkom's service levels, leading to customer dissatisfaction, reputational damage, business disruption and loss of revenue. This requires a continuous focus on information security, business continuity, and both internal and external awareness measures. Keeping abreast of cyberthreats allows us to develop new customer solutions, such as products powered by AI.
Local and international economic factors influence Telkom's ability to grow, the cost of doing business and customers' spending power. Such factors include muted South African economic growth, loadshedding, political and geopolitical pressures and socio-economic factors. Investor and business confidence, financial risks related to liquidity and foreign exchange, and exposure to interest rates also play a role.	Economic climate	MM5		MM6	Future-ready skills and expertise	Telkom requires specialised skills in ICT, digital and other areas to develop products and solutions that will increase revenue and improve customer service. We compete for such skills locally and internationally with traditional and non-traditional players. Our talent attraction, retention and development are influenced by gender and race diversity, the premium paid for skills and experience, and the expected future skills pipeline. Telkom emphasises skills and leadership development to ensure we have suitable leadership and future-ready capabilities.
Effective deployment of advanced networking and digital technologies can give Telkom a competitive edge as an infrastructure company and improve internal efficiencies. The quality and reach of our country-wide assets are key to our future growth and sustainability. Our ability to provide leading levels of network resilience, availability and throughput are likewise essential. This theme requires appropriate investment in infrastructure, digital applications, backup energy solutions, AI and other emerging technologies. It also requires a skilled and future-ready workforce, innovation, and a partner ecosystem to support product development and delivery.	Networks and digital technologies	MM7		MM8	Climate resilience	The Group's ability to respond to and mitigate the impacts of climate change is vital from both financial and responsible corporate citizenship perspectives. By negatively affecting our operations and customer service, climate change can have strategic and reputational impacts. Telkom must mitigate and adapt to climate change and use our resources responsibly to protect both our business and the environment.